U.S. Dollar Trading (USD) with little movement in stocks, traders used headlines from Europe for most of the day’s movement. EU President Van Rompuy backed the ECB and reiterated that the EU was ready to act on Spain’s Bank Sector but no additional Aid had been requested. US data was mixed with June Case Shiller House Price Index forecast at +0.5% vs. -0.1% previously. Looking ahead, July Pending Home Sales forecast at 1% vs. -1.4% previously. Q2 GDP forecast at 1.7% vs. 1.5% previously.
The Euro (EUR) the EU President comments and news Merkal will be traveling to China to garner support for Europe helped lift the EUR/USD to 1.2570. The next resistance level is at 1.2600 but we may see the level hold for now with the Jackson Hole event capping aggressive moves higher. The Sterling (GBP) the GBP/USD rebounded above 1.5800 and is well positioned for further gains with the recent 3 day pullback finding support near the upwards trend line at 1.5750. Little in the way of data this week will keep traders looking to technical and external factors for fresh direction. Looking ahead, no economic data tonight.
The Japanese Yen (JPY) USD/JPY is finding support above Y78.50 but barely moving this week as the USD risk event on Friday keeps traders sidelined. Further talk of QE3 from FED Chief Bernanke will see the Y78 level tested whilst delaying or downplaying will see the uptrend return. Australian Dollar (AUD) AUD/USD found support at 1.0350 and was able to bounce slightly on Tuesday but sellers came in to quickly cap the risk sensitive currency near 1.0380. Stock market direction will be the main driver this week with the RBA meeting next week the main risk event on the Horizon. On Thursday, Q2 Australian CAPEX forecast at 3.1% vs. 6.1% previously.
Oil & Gold (XAU) continued to consolidate at the recent highs finding support at $1660 and resistance above $1670 overnight. OIL/USD was supported by tropical storms in the US and stable stock markets.
Pairs to watch
EUR/USD to be capped at 1.2600 ahead of US FED Speech?
USD/JPY Safer Way to play USD strength going forward?
EUR/USD Still Strong as Buyers Optimistic
U.S. Dollar Trading (USD) with
little movement in stocks, traders used headlines from Europe for most of the day’s
movement. EU President Van Rompuy backed the ECB and reiterated that the EU was
ready to act on Spain’s Bank Sector but no additional Aid had been requested.
US data was mixed with June Case Shiller House Price Index forecast at +0.5%
vs. -0.1% previously. Looking ahead, July Pending Home Sales
forecast at 1% vs. -1.4% previously. Q2 GDP forecast at 1.7% vs. 1.5%
previously.
The Euro (EUR) the EU President
comments and news Merkal will be traveling to China to garner support for
Europe helped lift the EUR/USD to 1.2570. The next resistance level is at
1.2600 but we may see the level hold for now with the Jackson Hole event
capping aggressive moves higher. The Sterling (GBP) the GBP/USD rebounded
above 1.5800 and is well positioned for further gains with the recent 3 day
pullback finding support near the upwards trend line at 1.5750. Little in the
way of data this week will keep traders looking to technical and external
factors for fresh direction. Looking ahead, no economic data
tonight.
The Japanese Yen (JPY) USD/JPY is finding
support above Y78.50 but barely moving this week as the USD risk event on
Friday keeps traders sidelined. Further talk of QE3 from FED Chief Bernanke
will see the Y78 level tested whilst delaying or downplaying will see the
uptrend return.
Australian Dollar (AUD) AUD/USD found
support at 1.0350 and was able to bounce slightly on Tuesday but sellers came
in to quickly cap the risk sensitive currency near 1.0380. Stock market
direction will be the main driver this week with the RBA meeting next week the
main risk event on the Horizon. On Thursday, Q2 Australian CAPEX forecast at
3.1% vs. 6.1% previously.
Oil & Gold (XAU) continued to
consolidate at the recent highs finding support at $1660 and resistance above $1670
overnight. OIL/USD was
supported by tropical storms in the US and stable stock markets.
Pairs to watch
EUR/USD to be capped at 1.2600 ahead of US FED
Speech?
USD/JPY Safer Way to play USD strength going
forward?
TECHNICAL COMMENTARY
Currency
Sup 2
Sup 1
Spot
Res 1
Res 2
EUR/USD
1.2505
1.2530
1.2555
1.2581
1.2608
USD/JPY
77.90
78.27
78.60
79.14
79.38
GBP/USD
1.5678
1.5718
1.5815
1.5869
1.5912
AUD/USD
1.0300
1.0337
1.0365
1.0400
1.0443
XAU/USD
1633.00
1645
1666
1679
1700
OIL/USD
92.50
95.00
95.80
96.50
98.00
By Anthony Darvall (TonyD)
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
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